On October 1, 2025, Swifty Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $128.000, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Swifty's financial statements are prepared on a calendar-year basis. Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Swifty Equipment Company for the entire term of the note. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries)
On October 1, 2025, Swifty Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $128.000, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Swifty's financial statements are prepared on a calendar-year basis. Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Swifty Equipment Company for the entire term of the note. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:Current Attempt in Progress
- Your answer is partially correct.
On October 1, 2025, Swifty Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash
payment Valco Brothers Farm gave Arden a 2-year, $128,000, 8% note (a realistic rate of interest for a note of this type). The note
required interest to be paid annually on October 1. Swifty's financial statements are prepared on a calendar-year basis
Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Swifty Equipment Company
for the entire term of the note. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry for the
account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. List all debit entries before credit entries.)
Date
10/1/25
12/31/25
10/1/26 V
12/31/26 v
10/1/27
Account Titles and Explanation
Notes Receivable
Sales Revenue
Interest Receivable
Interest Revenue
Cash
interest Receivable
Interest Revenue
Interest Receivable
Interest Revenue
Cash
Interest Receivable
Interest Revenue
(To record the collection of interest)
Cast
Notes Receivable
(To record the collection of the note)
eTextbook and Medial
Debit
128000
Credit
128000
10000 00
10000
Assistance Used
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